How JustAnswer Works:

Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.

Get a Professional Answer

Via email, text message, or notification as you wait on our site.Ask follow up questions if you need to.

100% Satisfaction Guarantee

Rate the answer you receive.

Ask Lev Your Own Question

Lev, Tax Advisor

Category: Tax

Satisfied Customers: 24046

Experience: Taxes, Immigration, Labor Relations

870116

Type Your Tax Question Here...

Lev is online now

sub-s corp income from passive activities such as from rents

Resolved Question:

sub-s corp income from passive activities such as from rents and interest are now taxed as ordinary income,so are losses from these activities also classified as ordinary losses or are they still passive losses?

what you are saying then, the losses from rents on the s-corp level is passes on to the stockholders and that loss depends on the taxpayers individual situation if he can or cannot deduct the loss on his individual return ? correct?

If the person has another passive income - that income might be fully offset by passive losses.

Use Form 8582 , Passive Activity Loss Limitations, to summarize income and losses from passive activities and to compute the deductible losses. Use Form 8582CR to report passive activity credit limitations.

Generally, you may deduct in full any previously disallowed passive activity loss in the year you dispose of your entire interest in the activity. In contrast, you may not claim unused passive activity credits upon disposition of your entire interest in the activity. However, you may elect to increase the basis of the credit property in an amount equal to the portion of the unused credit that previously reduced the basis of the credit property.

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. OrvilleHesperia, California

Ask a Tax Professional

Get a Professional Answer. 100% Satisfaction Guaranteed.

136 Tax Professionals are Online Now

Type Your Tax Question Here...

characters left:

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.